Old and poor to suffer in fuel hikes, groups warn

THE largest electricity price increase in the history of the State will impact heavily on low-income families and OAPs, it has been claimed.

The 17.5% rise, which the ESB has blamed on international fuel costs, came into force last night and will add about €25-€30 onto the average two-monthly bill.

With gas prices due to rise by 20% on September 1, groups working with the homeless and OAPs have issued warnings about a fuel poverty crisis this winter.

Age Action Ireland spokesman Eamon Timmins said: “It’s unacceptable that old people this winter may be forced to choose between buying food and fuel.

“There will be a lot of hardship for pensioners this autumn and winter.”

Dublin homeless worker Fr Peter McVerry added: “Vulnerable people at the bottom of the economic ladder must be cushioned against cost of living increases such as oil or gas hikes.

“Some families are already struggling to feed or clothe their children and the rising cost of simply heating their radiators or hot water cylinders will make things worse as we face into the winter.”

Age Action said difficulties in heating leaking and poorly-insulated homes contributed to up to 2,000 deaths of old people every winter. International fuel prices have also made grocery staples like milk, flour and bread more expensive, it added.

Mr Timmins said British Gas yesterday announced a 35% increase in bills but it is not due to take effect until April 2009. The biggest ESB increases up to now were 12.6% last year and a 13.3% increase in 2003.

The Government moved to cushion the impact of yesterday’s ESB price increase on low-income families by raising the fuel allowance levels.

Social and Family Affairs Minister Mary Hanafin announced a 16% increase in the fuel allowance to bring it to €540 per annum.

The ESB had been hoping for a price increase of up to 30% but the Commission for Energy Regulation approved 17.5%.

“In light of the exceptional increases in international fuel prices which we have seen over the past year, the commission felt it was prudent to approve the 17.5% tariff,” said a spokesman for the CER.

The CER said it will review the situation in October with a view to sanctioning a further increase in January 2009.

The ESB said it was making a €300m contribution to help offset electricity prices for consumers next year. The company made profits of €432m in 2007.

Meanwhile, there are fears for the future of almost 200 jobs at power plants in Tarbert, County Kerry, and Great Island in Wexford after an announcement that a Spanish company is to buy the facilities from the ESB.

Negotiations between the ESB, its staff, trade unions, and Endesa dealing with all matters relating to employees affected by the €450m sale process should be concluded by the end of the year, according to the ESB.